CAATs Application: Inventory with Boos & Becker Inc [CLOs: 1, 3, 4]
Read problem 9.53 CAATs Application: Inventory on pages 405 and 406 of the textbook and complete the following:
• In general and without regard to the preceding facts, discuss the nature of CAATs and list the various audit uses of such packages.
• List and describe at least five ways CAATs can be used to assist in all aspects of the audit of inventory of Boos & Becker Inc. (For example, CAATs can be used to read the inventory master file and list items and parts with a high unit cost or total value. Such items can be included in the test counts to increase dollar coverage of the audit verification.) (Hint: Think of the normal audit procedures in gathering evidence on inventory when the client makes a periodic count; then think of how these could help in this particular client situation.)